Ovo Energy has been given the green light from the Competition and Markets Authority (CMA) to go ahead with the £500 million purchase of SSE’s retail arm.
The deal, which is expected to complete next month, will see the energy retail market transformed, and make challenger brand Ovo one of the country’s biggest suppliers.
Stephen Fitzpatrick, chief executive and founder of OVO, said: “We’re delighted with the CMA’s decision and look forward to bringing SSE into the Ovo family.
“There is a lot of work to be done, but we’re excited about the challenge ahead and the opportunity to help even more customers on the journey to zero carbon.”
Welcoming the CMA’s decision, Alistair Phillips-Davies, chief executive of SSE, said: “We are very pleased that the CMA has cleared the proposed sale of SSE Energy Services to Ovo Group.
“This underlines our long-held belief that a dedicated, focused and independent retailer will ultimately best serve customers, employees and other stakeholders. With the required regulatory approvals now in place, we can make the final preparations for completion, expected around mid-January 2020.
“Completion of the transaction will give SSE plc even sharper focus to delivering the low carbon infrastructure needed to help the UK reach net zero emissions.
“We have a clear strategy around developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core.”
SSE had previously tried to offload its retail service to focus on other areas such as networks and renewables. A previous proposed merger with Npower fell through last December.
You can read Utility Week’s interview with Ovo’s retail chief executive Adrian Letts here